General Liability Business Insurance
As you may know, there are several risks involved when owning and operating a business. As a small business owner, you need to make sure that you are well protected. Carrying various types of insurance is essential to guarding against the risk of financial ruin in the event of a lawsuit. The following describes what general liability insurance is, what it covers, and some reasons why a business owner would need it.
What is General Liability Insurance?
General liability insurance protects a small business owner from claims related to property damage, bodily injury, and business related negligence. General liability insurance also protect employees and various aspects of the business up to the limits of the individual policy. If an individual or another business files a claim against you, your general liability insurance coverage may help cover attorney fees, investigation by the insurance company, out of court settlements, and any court related judgments.
In short, here’s a summary of what general liability insurance normally covers and what it doesn’t.
- The types of things liability insurance will cover include bodily injury, property damage, advertising injury, libel, slander, lawsuits, and settlements.
- Claims that are usually not covered include professional mistakes, employee injuries, and auto coverage.
Why Would a Small Business Owner Want General Liability Insurance?
General liability insurance is recommended for virtually every small business. Even if your business is considered low risk, you could potentially face bankruptcy if even a single claim was brought against your company. Liability insurance may help keep your business operational in the event of a costly lawsuit. In some cases, clients may even require small business owners to show proof of general liability insurance before they will do business or sign a contract.
What is the Difference between Professional and General Liability Insurance?
Generally speaking, professional liability insurance covers claims due to professional errors and omissions. This type of insurance can also cover the errors and omissions of employees that a small business owner may hire. General liability not only covers obvious claims such as bodily injury, medical payments and property damage but harm to reputation. Harm to reputation could include libel or slander, for example. General liability insurance can help protect a small business if they are sued for anything from slander to bodily injury.
What Types of Liability Insurance is needed for a Small Business?
According to the U S Small Business Administration, the type of liability insurance needed by a small business would depend on the kind of small business the owner has. For example, someone operating a building contractor business may need more coverage than a web consultant. The location of the small business, and particularly what state it’s operating in, is another factor that will need to be considered. If it’s determined the business falls into a category that is lower risk one may want to consider purchasing a policy that combines property insurance and general liability insurance.
Licensed Insurance Broker
Small businesses need different types of insurance coverage in order to protect their assets and cover their employees. Small businesses that are looking for health, dental, or vision plans for their employees may need the assistance of a licensed insurance broker that has proven experience in the insurance field. When selecting eHealth insurance, a small business owner will have access to an easy to navigate website as well as a variety of premiums and a variety of plans. Contact Trinity Insurance for more information regarding your small business insurance needs.
Group Health Insurance
Is It Mandatory?
How the Affordable Care Act changed insurance coverage for small business owners.
Many small businesses are confused about whether or not they are required to provide mandatory group health insurance for employees. Under the Affordable Care Act (Obamacare), new health coverage requirements have been made that may affect small business owners.
Should small business provide health insurance coverage for employees?
There may be a number of advantages to offering health insurance coverage to your employees:
- Hiring and retaining talent. You know how important health insurance and access to medical care is to you and your employees. By offering group health insurance coverage, you may be better able to hire and retain the workers you want.
- Multiple ways to buy. You may be able to purchase an employer-based group health insurance plan through special government-run marketplaces, direct from the insurance company, or through private licensed online marketplaces.
- Help from licensed agents. When you shop with a licensed agent, your agent can often help you manage employee enrollment and also serve as your main point of contact with the insurance company.
- Possible tax credits. When they purchase coverage through government marketplaces, some small businesses with 25 or fewer employees with average annual wages of less than $50,000 may be eligible for a special tax credit of up to 50% of the employer contribution toward employee health premiums.
- Preventive care coverage. Under all Obamacare-compliant plans, certain preventive care services are covered without deductible, co-payment or coinsurance.
- Coverage for pre-existing conditions. Under the ACA, any health insurance coverage offered under the SHOP Marketplace includes coverage for pre-existing conditions.
How the Affordable Care Act changed insurance coverage for small business owners
Generally speaking, Obamacare does not require most small business owners to offer group health insurance coverage. If the organization has fewer than 50 full-time employees, small business owners are not subject to a penalty for not providing health insurance for their employees. Many small employers opt to provide coverage anyway, in order to help them hire and retain the best workers.
As of 2016, if the organization has 50 or more full-time employees, it is required by law to provide health insurance to all employees or be subject to a penalty.
Special rules and requirements may apply when employers offer coverage:
- Any plan offered by an employer must meet benefit and coverage standards defined by the Affordable Care Act.
- Any plans offered by the organization should meet the standards of affordability set forth in the guidelines of the ACA.
- Eligible employees must be offered health insurance within the first 90 days of their employment.
Employers under this umbrella are also subject to the Employer Shared Responsibility Payment if the coverage they offer is not affordable for their employees, or it does not meet the minimum standards.
If your small business is required to provide health insurance under the ACA, don’t leave your company at risk for potential penalty. Even if you’re not required to provide coverage, offering health insurance to your employees may be a good idea. Contact your health insurance representative to see how you can provide your employees with health insurance coverage today. Trinity can help you find plans for health insurance which include medical, dental and vision with resources on hand to guide you through the process.
Small Business Health Insurance
Health insurance is complicated,
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You can browse plans and read articles online or call and get our personalized recommendation from one of our agents. No charge, no expectations to enroll.
How Does Small Business Health Insurance Work?
There are four things every small business owner should know about how small business health insurance works.
- Coverage is generally guaranteed issue
- You need at least one employee to qualify
- You must contribute toward employee premiums
- And you can shop for coverage at any time of the year